Calculate taxes on qualified and ordinary dividends. Shows your exact 0%, 15%, or 20% rate on qualified dividends plus ordinary income tax on non-qualified distributions.
How to Use This Dividend Tax Calculator
Enter your qualified dividends (shown in box 1b of Form 1099-DIV) and your ordinary dividends (the difference between box 1a and box 1b). Add any REIT or MLP distributions which are typically ordinary income.
Your other income determines how your dividends stack for rate purposes. Qualified dividends that fall within the 0% LTCG bracket are entirely tax-free β the calculator shows exactly how much of your dividends qualify at each rate.
The Formula
Ordinary Taxable Income = Other Income + Ordinary Divs β Standard Deduction
Qualified Divs in 0% bracket = Max(0, 0% threshold β Ordinary Taxable Income)
Qualified Divs in 15% bracket = Portion between 0% and 15% thresholds
Qualified Divs in 20% bracket = Portion above 20% threshold
NIIT = 3.8% Γ Investment Income above MAGI threshold
Example
Single filer, $80K other income, $15K qualified dividends, $3K ordinary dividends:
Ordinary taxable income: $80K β $15K = $65K
0% threshold: $48,350 (already exceeded by ordinary income)
All $15K qualified dividends taxed at 15%: $15,000 Γ 15% = $2,250
Ordinary dividends: $3,000 taxed at 22% = $660
Total dividend tax: $2,910
Frequently Asked Questions
What is the difference between qualified and ordinary dividends?
Qualified dividends are taxed at preferential capital gains rates (0%, 15%, or 20%) and come from US corporations or qualifying foreign companies where you held the stock for at least 61 days during the 121-day period centered on the ex-dividend date. Ordinary dividends are taxed at your regular marginal income tax rates (10%β37%). Your 1099-DIV shows qualified dividends in box 1b.
What are the 2025 qualified dividend tax rates?
For 2025: 0% for single filers with taxable income up to $48,350 and married filing jointly up to $96,700; 15% from $48,350 to $533,400 (single) / $96,700 to $600,050 (MFJ); 20% above those thresholds. Qualified dividends are stacked on top of ordinary income when determining the applicable rate.
Are REIT dividends qualified?
Generally no. Most REIT (Real Estate Investment Trust) dividends are treated as ordinary income, not qualified dividends. However, some portions may be classified as capital gain distributions (taxed at LTCG rates) or return of capital (not immediately taxable). Check your 1099-DIV from your REIT for the breakdown. The 20% QBI deduction may apply to some REIT dividends.
Do I owe taxes on dividends reinvested through DRIP?
Yes. Dividends that are automatically reinvested through a Dividend Reinvestment Plan (DRIP) are still taxable in the year received, even though you never received cash. The reinvested amount becomes the cost basis for the new shares purchased, which affects your capital gains calculation when you eventually sell.
What is the Net Investment Income Tax on dividends?
The NIIT adds an additional 3.8% tax on the lesser of your net investment income (which includes all dividends) or the amount by which your MAGI exceeds $200,000 (single) / $250,000 (married filing jointly). This applies on top of the regular dividend tax rates, so high earners can pay up to 23.8% on qualified dividends (20% + 3.8%).